A Penny Saved: Sirius Tops Street by 1¢ 64 comments
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Perhaps it is being read as a sign that SIRIUS XM Radio (SIRI) is indeed going to cut costs, and scale metrics. SIRIUS XM Radio announced today that Sirius, as a stand alone company, beat the Street's estimates by a penny. The company reported a loss of 6 cents per share vs. street expectations of a 7 cent loss.
While losses are never anything to celebrate, the financials of Sirius’ second quarter would seem to indicate that there is light at the end of the tunnel, and that with merger synergies happening out of the box, that the company could have a rosy future faster than some anticipate.
The company saw revenues rise by 25% in combination with subscriptions rising 25%. Satellite radio is finally getting to the point where new additions seem to be adding to the bottom line, and costs seem to be not only scaling, but under control.
What does the future hold? Karmazin will likely speak a bit to that in the conference call at 8:00 AM EST.
Disclosure: Long SIRI
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This article has 64 comments:
1. DOJ approval
2. FCC approval
3. A merger take place
4. Shorts have to cover by last Tuesday
5. Better than expected results by $.01
6. Announced $400 million in synergy savings
Ok, where is the bounce/pop/anything? Why is this stock still near its all time low, less than the pre-merger amount, and way less than the price 1 1/2 years ago before the merger was even considered? Any ideas?
Man, at least get your spelling correct - it's hard to take your comments seriously when you can't even use proper grammar. Talk about unintelligent, borderline moron...
I am left to wonder why the gurus like Cramer and Tyler and others didn't see or understand the stock market and how this institiutional selling would happen to SIRI.
LOL ...it's "on the fly", not "in the fly" and it's MISSPELLED, not mimsspelled. Oh, you are expressing from your "feelings"? well, that explains alot. MORON.
example: NAB might have their fund managers pressure siri/xm stock lower by shorting, FCC has given them plenty of time to do this. NAB would drive the stock so low that siri/xm has 0 market share and would go BK.
He was all PRO-SIRI, PRO-MERGER, PRO-SHORT-TERM, LONG-TERM and then he backtracks.
Typical Cramer.
Bahh!
Anyway, to your point, the top 10 'big sticks' own 20% of the company, and institutionals own about a third of the float. Note that Apollo's Fund IV owns 6%, and those guys are pretty smart. They make Wall Street look like E-trade boobs. Here is the full list:
finance.yahoo.com/q/mh...
Any index that adds SIRI will increase those numbers by a sizable amount.
Also, many institutions have investment guidelines which prohibit no help to SIRI), probably the issue behind the reverse split idea.
By then Cramer will have changed his mind another twelve times to the point where he'll just stop talking about Siri......hopefully.
163888, not bad for 42 years old and retired.
By the way, Mr.Vicar, you did not answer my question with a simple yes or no as to whether you owned stock in SiriusXM. What you did is dance around the question in saying that you never offered opinions as to go short or long. Well, that's close enough--we'll consider that a no, you do not own stock in SiriusXM....
By the way, there is one more thing: Killer, you kill me. You said the the best three word phrase I've heard in quite a while: I smell poop. That one kept me laughing all the way up until bedtime....
Scot's Slant
The Vicar is doing his best to catch up on outstanding requests.
I do not have a long or short position in Sirius. I have no position, and never had a position. I do not plan to take a position. If I ever invest in this company, I would buy the convertible bonds. They have a much more favorable risk-reward profile than the common equity shares.
The Vicar does not work for Vanguard. However, he does own VTSMX and its corresponding exchange-traded fund VTI. Being indexes, both are convenient benchmarks for evaluating the performance of other equity investments. The Vicar did so here to highlight the fact that a "boring" mutual fund better serves the individual investor's goals than speculative companies driven by media hype, with no track record of profitability.
I then posted this today after following Blah, blah, et cetera's link above:
I found it interesting that when reviewing major institutional investors in Sirius XM that Vanguard was one of the major investors.
as of March 31, 2008.
VANGUARD GROUP, INC. (THE) 40,432,184 shrs $115,636,046
and....When I looked at the major Mutual Funds Invested, I found that VicDave is indeed invested in Sirius, even if indirectly:
VANGUARD TTL STK MRKT INDX FND 9,922,742 shrs $28,379,042
VANGUARD EXTNDD MRKT INDX FND 7,004,571 shrs $20,033,073
VANGUARD GRWTH INDX FND 3,408,268 shrs $ 9,747,646
As I said above, mutual funds do cushion the blow when individual stocks fail to perform, VTI contains BAC with a 52 week range of about $53 down to $18.50 and back to its current price of 31.75. Even with this volatility the VTI is only down (11.75 %) YTD. In 2001 and 2002 the VTI lost (22%) and (13%) while some of the underlying equities made money. My point is that Investing in Sirius XM is "stock picking", some you will lose on and some you will win. We can discuss numbers and make them bend to our will or we can invest in companies that we have done our home work on and buy when the opportunity presents itself, and definitely Sell when we're making money.
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Nice call today.